Monday, October 22, 2012

MARA, the property pushover

There is an old sinister interpretation to the acronym MARA or Majlis Amanah Rakyat (MARA).

They say then MARA means Money Always Run Away. Interestingly, the person that told of that interpretation actually ran away with commissions from contracts given out to Chinaman suppliers.

MARA is a purpose-incorporated Federal Government agency by a Parliament act to assist the development of Malays. It has been successful in many ways, especially education.

For instance, 54 MARA Junior Science Colleges (MRSM) have been built and tens of thousands of Malays benefited in the various tertiary level financing programs, local and abroad. This and it's scholarship program have become feeder of Malay professionals to industries and institutions.

Unfortunately, as the interpretation say, MARA has been an organization where so many individuals took advantage of and made it a push-over.

MARA has and is acquiring properties and assets that it should not have interests in the first place and should not be in business.

Kelab Rahman Putra, Sg Buloh Selangor

One of the notorious case is the MARA acquisition of the Bukit Rahman Putra property development project in the late ‘80s, when Mohd. Tamrin Ghafar was the Chairman.

MARA paid over RM70,000.00 per golf membership where 260 golf membership of Kelab Golf Rahman Putra was transferred to MARA and acquired 100 acres from the 760 acres development.

Ashley Hotel, London

Then the acquisition of 53 room Ashley Hotel near Paddington Station, London by MARA Inc. two years ago.

Why MARA goes into the hotel business and in London is baffling many.

MARA has neither the expertise in the inn business nor understands anything remotely about property in London. In the first place, they never did were into the inn business in Malaysia.

746 Swanston Steet, Melbourne

The most recent is MARA Council's approval to dish out RM140 million of soft loan to MARA Inc. to acquire an accommodation building in the neighbourhood of Carlton, Melbourne, Victoria.

MARA Inc. is supposed to acquire 746 Swanston Street, Carlton, Melbourne VIC 3053, Australia. Currently, the building lease twin-sharing or single rooms at the rate of AUD 160 and AUD 210 per week, respectively.

Why MARA is doing this especially when the sponsorship program for students to Australia has been reduced drastically?

If the acquisition of this property is for the benefit of MARA sponsored students in Australia, then the next question shall be how many students do MARA sponsor to study in Australia annually.

Wouldn’t these sponsored students attend Universities all over New South Wales, Queensland and Western Australia too?

The fact that 746 Swanston St. is a building where there is 313 beds. Unless MARA intend to have about 100 sponsored students to Melbourne University and RMIT annually, the acquisition of the accommodation building is about making money from a market where MARA Inc. has little understanding about.

RM 140 million for a property investment abroad by a wholly own company of a Federal Government socio-economic development agency is definitely mind boggling.

MARA should be looking into acquiring high street commercial spaces and develop the Bumiputra retail opportunities first instead of looking at and acquiring properties abroad.

Majlis MARA or rubber stamp?

Is the ahli-ahli Majlis MARA merely a rubber stamp for someone's greed?

As a comparison, RM 140 million should be suffice to build four different complete MRSMs and fully fitted, even with the laboratories and sports facilities.

MARA could not have decided for that kind of investment without the explicit knowledge and blessing of the Minister-in-charge.

Datuk Muhammad Lan bin Alani

The Chairman of the outfit doing all these strange acquisition, MARA Inc., Y. Bhg. Datuk Mohammad Lan bin Alani is a former ADUN where the Minister-in-charge is the MP and UMNO Seporna Division Chief. [Read his profile here]

There are already rumours circulating about this man travelling on First Class treatment to London and stay in £400-500 per night accommodation on visits which is supposed to be ‘official business’ for MARA Inc.

Off course, it is unfair to blame politicians or in this case, former politicians only.

This will not happen if MARA management did not prepare the proposal papers for Majlis MARA to approve and allow such exorbitant claims and spending for top appointments in MARA.

Datuk Ibrahim Ahmad (left) and Dato Idris Jusoh (right)

The Director General of MARA that is jointly and severally responsible for taking MARA astray from it's rightful path is Datuk Ibrahim Ahmad. He was bumped few notches up in the swiftest of time during the time of Dato Khaled Nordin as Minister of KPUN. Ibrahim is also the Deputy Chairman to MARA Chairman, Dato Seri Idris Jusoh in Majlis MARA.

This will not look good in any way one sees it, especially because MARA is a Federal Government agency to help the Malay and Bumiputera masses, and not some already well-to-do individuals to have a lifestyle and indulge in business they dream off.

If the Minister-in-charge is allowing an UMNO leader from his own kawasan to devour MARA, then it would be anyone’s best guess as to what else have been passed or even covered under the watch of this Minister.

Datuk Shapie bin Apdal

Recently, Sabah has been seen as a stiff battleground for BN. Scandals such as these are definitely vote-losing big-ticket items. RM140 million could be spend on four different MRSMs in four different parliamentary areas all over Sabah.

In a time of limited scholarship fund for Universities and Colleges, local and abroad, to meet demand of Bumiputera students that is supposedly guaranteed under Article 153 of the Federal Constitution, RM140 million can pay the tuition and board of hundreds of students a year.

This revelation will not auger well for government. Rakyat will be angry if MARA is being made to be pushed-over. The Malays and Bumiputera still require the socio-development programs under MARA, even though she has been around over 45 years.

Election or no election, one cannot allow such thing to prolong. By right with an election around the corner, more care should be exercised. In the age of digital democrasy, that care must be for all the time.

Minister-in-charge, Dato Shafie Apdal must do something about this now. This expose on MARA is only the beginning.

Is it your money or is it because you fail to join their club?let the MARAees complain. When they are not complaining, why should you? Just watch and concentrate what you're doing now for living.Anyway it may also true that some MARA sponsored students in Australia are living lavishly on the loan/scholarship while their acedemic performance are poor. Therefore it is justified for MARA officers to spend these portion of money allocated for students; especially years between 2008 to 2010 in Australia.

i was offered a place at Imperial College to do my Masters. When i approached MARA for fin. assistance, my request was turned down. As a Bumi, I'm dissapointed, as it is a well known fact sponsorship was given to other students at lesser known universities.

Congrats on your expose of sorts, i believe you will bare more in due course. Little bird tells me you REALLY should focus on the Ashley Hotel deal: wild stories of intermediaries making SINFUL amounts, ferraris on top of millions in cash portions, etc. Btw was it a coincidence the then MD of MARA inc left two years ago about same time as the Ashley Hotel deal?

MARA built a mini complex at Jalan Persiaran Gurney, Datuk Keramat about 2 years ago.

THe design was poor and the development concept or objective was apalling or difficult to understand. It was said to cost around RM8-10 million and shoplots inside the buliding supposed to be rented out for certain types of business.

It is now near empty and partly used by Mara themselves. Zero income. Obviously the Management only thought of spending money but did not know how to generate any income from it.

I think the built it without proper feasibility study. This could happen accross the board to many other Mara properties nationwide.

Mara need professionals to manage and develop their properties. Not a bunch of idiots!

Got my master in chemical engineering from a public university in southern state in 2010..So I decided to try my luck by applying scholarship from MARA to pursue my study..The scholarship that I tried my luck is called 'Skim Pelajar Cemerlang'..But guess what..I never get any replied from MARA regarding my application..However, my ex-classmate got that sponsorship..With his CGPA that was below than me, I keep on wondering how on earth that chap got that scholarship.. Truth then finally prevailed..That 'chap' got the scholarship because his father know someone with high position in MARA!

Anonymous said...Look at Maju junction, tell me if it is doing well?The new MARA buildingis a misfit. Wonder who is the planner. Does he carry out any market study? Six months open but it looks like it is not lainched yet. What is the attraction of going there?

7:27 PM

MARA has a piece of land there and need a new corporate office. From what I see, they just want to maximize returns on the premium lots. And what would you have done??

MAJU Junction ( one of the VERY VERY few Malay owned buildings in KL ) is a private entity, nothing to do with MARA, sorry for being stupid but what does MAJU Junction got to do with this article???

By and large MARA has done a lot of good things too...a lot of people benefited from its existence. It is the people who are running the show that gave it the bad reputation.

Yes the Kelab Rahman Putra fiasco by MARA is deeply entrenched in my mind and please take note...who was the greedy guy running the show then.....

Voice, thank you for the exposure and I know you meant well but some of your commenters are whacking all round without perspective... MARA has a lot of flaws but it has help my community and grateful for its existence...

It is to do a WAU 4 MARA. Separate the business arm from the scholarship arm. Let the scholarship arm being run by a separate entity with reps from Teraju, Khazanah and Petronas. At least they know the difference between top notch uni and uncompetitive universities...

IN OTHER WORDS, THAT IS HOW YOU KEEP DOWN ISSUES FROM EXPLODING. BY NOT HAVING TO MAKE ANY PUBLIC STATEMENT, CORRUTION AND ABUSES WILL PROLONG. THIESE DAYS CIVIL SERVANTS ARE SO CORRUPT BUT IT IS THE MINISTERS THAT GET BLAMED.

Nak bersemuka dengan DG MARA himself? You must be kidding me. The way Voice puts it, he may be part of the problem.

Care to check how fast he rise to the DG Chair? What is his contribution that made him a star? Well, staff MARA boleh confirm that thus far, his contribution is to change Lagu MARA (and off course with fees!!).

Your posting is about MARA Council decision to give soft loan of RM 140m to MARA Inc. for the purpose to buy a building 746 Swanston St, Carlton, Melbourne.

I did my checks and this approval was at MARA Council's 385th Meeting on 13 Sept 2012, which is very recent.

Fact also is that former ADUN Dato' Mohammad Lan, Alani, who is a politician from Minister-in-charge's UMNO division.

There is a mush talked about previous case about how MARA Inc bought Ashley Hotel, near Paddington Station, involving Mohammad Lan.

Then again, be it the MARA Council's decision to give money to MARA Inc for 746 Swanston St. or buy Ashley Hotel, cannot happen if the MARA Council did not discuss and decide on the subject matter.

All proposals to be brought forth and tabled for discussion and approval by MARA Council must go through one man; Dato' Ibrahim Muhammad, the Director General of MARA and now Deputy Chairman of MARA Council.

He is the key man here. Ibrahim must have certain understanding why these proposals are being tabled at certain MARA Council meeting and who are the parties 'involved' in these.

Not only he has knowledge, he could also be accessory if not an engineer in some 'unkosher' feat to milk-from-mARA, esp via property deals.

This is because Mohammad Lan is not a MARA Council member. It is only highly probable that MARA Sr Management knows what MARA Inc is up to, but that understanding is not wholesome at MARA Council.

Tuan Haji should investigate on these deals more and alert the MACC to come in.

This is about Bangsa Melayu and not selected privileged individuals, at the expense of the masses who gave them a lot of trust.

No need to fuss about SPRm.. they already have 3 officers placed in MARA. even a senior officer.

unlike PTPTN.. MARA handles 45000 existing students and sum of 20k new applicaton every year. do you know how much money spent to handle 40K students a year in Malaysia and abroad? Yes.. probably there are a few of High ranking people wanting their children going abroad through MARA.. but all is loan. Payback or get blacklisted. no questions asked. Dato Ibrahim is but the most hardworking DG MARA has ever had yet.. his determination to change the landscape of MARA is pushing all the management to work double time. but what 2 say.. there's always a few things that u just got to close ur eyes on.. but looking in a bigger picture.. not having MARA would be difficult as well.

There will be a big heist of mara’s assets. Just like MARA holdings before that was taken over byThe Management and later regretably shred to pieces by Nadzmi. Later became NADI Group after selling hot properties like Binjai @ KLCC, plantation lands etc. The trick is age-old..inflate the acquisition prices to a point of over the top( 1st round of swindle). When the income from these assets already sucked out by paying unwarranted invoices, the losses become too big and in the end, have to be recognised in the books. So a MARA company will be bought cheaply togehter with the stipulated assets by The management. Then, like an innocent new whore, these asset will be sold to the highest bidder (2nd round of swindle).

Or then, they will be injected into a plc. All legal. There’s nothing the DG can do, nor The Chairman colud even tweak his evergreen smile anymore. They just can see that all these projects, assets and MARA-related contract that have undeniably great potential morphes into a minister’s family 7 bedroom mansion on Belgravia or any high end apartment at West End.Just cant figure out why London, the birthplace of the whites that divided and ruled us. We are still so ‘in love” with them.

Trust me. By God, there will robbery. Robbery after robbery. In a bad light, its like rape after rape until you lose count on what you are supposed to do because you are used to it by then, some even say that it is not rape! It s for the unity of malays!!!

There is why these people in the picture, they always look listless, incapable of stopping these atrocious crimes against the Bumiputera. Its not the system. You just have impotent and insecure people running the agency. Some even participated in such dark schemes. Even the country, by some distance,

I hope nasty but truthful bloggers like APA, oe even this JMD, UncleSeekers go all out to ram this out to our Prime Minister, who may not even care. Even worse, our opposition is out of touch for now, because they might do it when they come to power. My reservations for Mr Rafizi at this juncture, or is it all of them started like Anwar but later grew horns in the end?

Come on sir, Sabah’s politicians are not true leaders. Sabah is about vote-buying.

So sack them. Before the country is bankrupt and our successors pay 60% income tax rate. Remeber Palestine prior 1920s and what has become todate? They will come, the enemies of Islam. Now then with some clues, whats happening with Johor? Even MARA will be broken to really small-small pieces. Mr Rafizi, pls Now!I

So I tailed one of them. Came to a an Ashley hotel. Mr H can be contacted by this no +44 7506 846171.

As a malay londoner who have resided for five years, I was utterly shocked for the first itme to hear dark quips of CBT connecting well-to-do malays. Ashamed mostly. CEO and stuffs but so impotent. Keji.

It is all to do with the robber-barons and incompetent management team or CEO overlooking these funds they are responsible for.

In fact, MARA is a wonderful institution for the Bumiputera over the many decades. But THey need to change. They need to buck up. They need to show results as they have not - evidently likened to students with mediocre results attain stabilitylater in life BUT never par-excellence...

It is Impossible for MARA (being a Malaysian entity) to purchase the building in Melbourne. The simple reason is that the Australian Government would not allow it as this is an old building and was build at least some time ago at least 10 years ago.

Foreign entity such as MARA would only be allowed to buy brand news buildings with the approval of the FIC in Australia. If MARA has indeed bought this property the monies paid are not for the ownership of this building but perhaps for the rental rights, either which way is astronomical and way over the valuation for the building..perhaps the SPRM should investigate...